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Digital disruption and digital transformation are no new concepts today. Businesses are constantly trying to adopt new technologies and deliver superior customer experiences. The pandemic has affected businesses worldwide, forcing enterprises to change the way they operate. The insurance industry is one among the many that have taken a hit. Going beyond the outbreak, customers today want to keep up with digital trends, pushing insurers to move past the traditional approach. Transparent, engaging digital communication is the business focus today.
This technology evolution means addressing new customer needs, expectations and behaviours making customer retention just as important and difficult as acquisition. Insurers are under enormous pressure to drive changes that will enable them to thrive in this consumer-driven digital world. There are multiple challenges that insurers encounter on this journey to digitalization.
Adopting a new, connected ecosystem: Delivering superior experiences to customers, agents, employees and other stakeholders while keeping up with the trends in the digital transformation space. The insurance industry has always been perceived to be a slow player in the transformation space. So, offering connected experiences across digital touchpoints is imperative to stay ahead of competition. For this, embracing a new ecosystem that combines both, the physical and digital aspects seems like an enormous task for enterprises.
Legacy system modernization: Inoperable systems pose a huge challenge for enterprises trying to adopt new-age technologies. Implementing new tools and operating models into tech stacks is challenging as the current systems lack the capabilities to adapt to modern technologies. According to a Genpact report, 68% of insurance companies see legacy systems as the biggest obstacle to digital transformation. Switching off legacy systems poses its own challenges from loss of valuable data to security concerns and is an expensive process as well. To find a way to overcome legacy systems and its challenges is another obstacle.
Enterprise agility: Efficiency and agility are key factors affecting the ability of enterprises to keep pace with accelerating industry requirements. To be able to deliver an experience that is agile and effective, and enterprise-wide technology adoption is necessary. Whether it is internal or external operations, digital transformation will be successful only if all areas are addressed and integrated. Approaching and supporting these agile requirements is something that insurers are struggling with.
Fighting competition: New entrants in the insurance space – the insurtechs and posing major threats to the giants. Their ability to cater to customer needs and ever-evolving technologies at a speed is attracting customers. For the established enterprises, poor customer experiences can mean disaster. Future-proofing of businesses to do away with competition requires strategizing and quicker implementation.
These are just some of the challenges faced by industry giants in the digital world. To endure the changing waves of technology innovation, agility and adoption are of pressing importance.
Personalization: It is no more a ‘one-fits-all’ game. Tailored products that are customized to individual needs is what customers want today. As enterprises switch to digital models, not only are they able to cater to customer demands but also maximize on profits as they reduce dependencies on human effort.
AI in insurance: Advanced algorithms and better data processing, AI is changing the game for insurers. Doing away with paperwork and manual follow ups, it ensures quicker cycle, reduced costs and higher profitability.
Automation: BOTS are seeing widespread adoption as they provide customized experiences and much faster. These are also automating tasks like claims management that are normally time consuming.
Analytics: The ability to extract accurate, real-time individual data though connected digital touchpoints is enabling proactive and highly customized responses to customers. Additionally, it is helping build more deeply analyzed risk profiles, protecting enterprises from risk exposures.
Telematics: This technology is changing the auto insurance as now policy premiums are defined by the insured’s’ driving habits that are constantly monitored by technology. Everything monitored, data collated and assessed for a tailor premium, this piece is changing ways for everybody.
Few among the numerous possibilities today, to provide customers with an experience that will keep them hooked and rate enterprises high on satisfaction. It’s a customer-centric world and keeping up with trends is the only path out of digital disruption.
At Neutrinos, we provide a full-suite of technology solutions and services that are designed exclusively for the insurance industry. From remote insurance solutions, adoption and implementation of new-age technologies like AI and IoT to legacy system modernization, we have hands-on experience in all things digital transformation for the insurers. Thinking of taking your digital transformation initiatives to the next level? Talk to our experts to find out how you can leverage on the Neutrinos MXDP and deliver an experience that stands out.